Chapter 1 Defining Hospitality and tourism

Section 1.1

  • Hospitality industry- a group of businesses composed of establishments related to lodging and food-service management.
  • Bed-and Breakfasts (B&Bs)- small unique inns that offer a full breakfast with a night's stay, as well casinos, restaurants, catering companies, hospitals, schools, and many other facilities
  • Tourism industry- a group of businesses that encompass travel/transportation vendors for air, rail, auto, cruise, and motor-coach travel, and promote travel and vacations
  • Service- intangible thing that is a task performed for customers by a business
  • Variables- factors that can cause something to change or vary
  • Perishability- the probability of a product ceasing to exist or becoming unusable within a limited amount of time
  • Intangibility- a state of being abstract, as are things that cannot be touched
  • Changeability- a condition of being subject to change or alteration

Section 1.2

  • Diversity- ethnic variety as well as socioeconomic and gender variety in a group or society
  • Ecotourism- a branch of tourism encompassing adventure tourism and sustainable development of regions for future generations
  • Market Segments- groups of consumers categorized by specific characteristics to create a target market

Chapter 2 Economics and the Impact of Tourism

Section 2.1

  • Infrastructure- the physical components of a destination, such as hotels, restaurants, roadways, and transportation, that support tourism
  • Economic multiplier- the process of how money filters through a loc al economy and is spent and re-spent, creating income for other businesses
  • Leakage- tourist dollars spent on imported goods so that revenue ends up in foreign economies
  • Globalization- the increasing integration of the world economy
  • Sustainable Tourism- tourism that allows a destination to support both local residents and tourists without compromising future generations
  • Aesthetic Pollution- the spoiling or contamination of the natural beauty and features of an environment, due to poor planning and design of tourism projects
  • Ventures- travelers who tend to be the first to discover a new, unspoiled destination
  • Dependable- travelers who prefer familiarity and creature comforts and seldom try anything new or different

Section 2.2

  • Business Travel- travel for the sole purpose of conducting an individual's or company's business
  • Meeting and incentive travel- business travel by employees to attend a business meeting or as a reward for having met or exceeded company goals
  • Meeting Planner- a person who organizes and plans a meeting
  • VFR Travel- travel for the purpose of visiting friends and relatives
  • Leisure Travel- travel for the sole purpose of enjoyment, can be more complex
  • Maslow’s hierarchy of needs- a theory that explains what motivates people to act in certain ways or make certain decisions



Chapter 3 Restaurants

Section 3.1

  • Commercial Site- an establishment, such as a restaurant, where food-and-beverage business competes for customers
  • On-site facility- an institutional or noncommercial establishment, such as a hospital or corporation, that provides meals for people involved with the property
  • Full-service Restaurant- a restaurant where a customer sits at a table, gives an order to a server, and is served food at the table
  • Quick-service restaurant (QSR)- a restaurant offering speedy basic services, convenience, and constant quality at low prices
  • Chain- a type of business that has more than one location with the same name under the same ownership
  • Franchise- a type of business that is set up through a franchise agreement, which is a contract between a franchisor and franchisee to sell a company's goods or services at a designated location

Section 3.2

  • Front of the house- the area in a hospitality establishment that guests view, such as the entrance and dining room
  • Back of the house- the area in a hospitality establishment that guests usually do not view, including all areas responsible for food quality and production, such as the kitchen and receiving, office, and storage areas
  • Production- an assembly-line process by which food is prepared, plated, and expedited by teams at various food stations
  • Return on investment (ROI)- a calculation used to determine the ability of a product to generate profits


Chapter 4 The Hotel Business

Section 4.1

  • Transient Guest- an individual traveler with a reservation, staying in a hospitality property for a maximum of 30 consecutive days
  • Meal plan- a room rate that includes meals; some choices of meal plans are: European plan, Continental Plan, Bermuda Plan, Modified American Plan, and American Plan
  • Yield management- a system of maximizing revenue through adjusting room rates according to demand
  • Average daily rate (ADR)- a rate based on total sales for the day divided by the total number of sold rooms
  • Occupancy percentage (OCC%)- a percentage calculated daily and based on the number of rooms sold as a percentage of the total number of available rooms
  • Revenue per available room (revPAR)- a rate that reflects a hotel's revenue per available room

Section 4.2

  • Front of the house (lodging)- the area in a lodging facility that guests view, such as the lobby
  • Back of the house (lodging)- the area in a lodging facility where support services take place, which guests usually do not view
  • Night auditor- the hotel staff member who does the night audit and balances the guest's accounts each evening
  • Guest service agent (GSA)- a hotel staff member who performs all of the functions of a desk clerk/agent, concierge, and valet
  • Guest or uniformed services- staff members in uniforms, including the bell staff, valets, security officers, concierge, and door or garage attendants
  • Concierge- a hotel staff member who helps guests make arrangements for transportation, restaurant reservations, event reservations, and entertainment tickets, and advises guests about activities in the area

Chapter 5 The Tourism Business

Section 5.1

  • Disposable income- which is the money left from a person's gross income after taking out taxes
  • Niche Market- a new market in tourism that bases travel on specific interests, such as ecotourism
  • Package Tour-a prearranged tour that offers value, guaranteed sightseeing, and quality product
  • Charter Tour-a tour in which a tour operator buys all the seats on an airplane, train, or bus and resells them to travelers
  • Customized Tour-a tour that is more expensive than a package tour and is designed specifically for an individual tourist

Section 5.2

  • Hub-and-spoke system- an effective network for an airline formed by a hub, or a large airport, connected to other smaller airports called spokes
  • Frequent-flyer program- a program in which an airline offers free travel, upgrades, and discounts to program members
  • Amtrak- a company that operates a railroad system with combined passenger and rail service throughout the continental United States
  • Windjammer- a sailing ship that offers passengers the opportunity to sail privately and work with a crew



Chapter 6 Destination Marketing

Section 6.1

  • Destination- the final stop of a journey, or the goal for travelers
  • Destination Marketing- the process of developing, promoting, and distributing specific locations to travelers and maintaining appeal as long as possible
  • Seasonality- the concept that certain destinations appeal to travelers at certain times of the year, based on climate and geography
  • Resort- a destination that provides entertainment, recreation, leisure activities, accommodations, and food for guests
  • Destination resort- a resort property in a specific location with a concentration of resources or facilities in a localized area

Section 6.2

  • Intermediary- an agent who does not work directly for a travel provider but sells his or her products for a fee
  • Commission- a fee or payment for services based on a percentage of products sold
  • Channel of Distribution- the path a travel product takes from the producer to the consumer, or traveler
  • Convention and visitors bureau (CVB)- an organization that works with meeting planners to provide tourist information services to business and leisure travelers




Chapter 7 Sports, Events and Entertainment

Section 7.1

  • Amateur Sports- athletic activities and competitions for athletes who do not get paid
  • Paralympics- competitions in which the world's best athletes with physical disabilities showcase their talents
  • Commercial recreation- any recreational activity for which a guest pays a fee
  • Public recreation- fee or paid recreation that takes place on state and federal lands and in city, state, or national parks
  • Therapeutic recreation- any recreation that includes activities to help a person's emotional, mental, or physical health

Section 7.2

  • Mega-event- the largest type of event, which is a unique, "must-see" happening that has international appeal
  • Hallmark event- a local or regional event with national or possible international appeal that occurs once or annually
  • Consumer show- a single-or multi-day exhibition held at convention or civic center arena
  • Performing arts- a segment of the entertainment industry that includes the exhibition of live presentations by artists, such as actors in theaters or performance artists in other venues


Chapter 8 The Marketing Environment


Section 8.1

  • Marketing- the process of developing, promoting, and distributing products or goods and services, to satisfy customer's needs and wants
  • Distribution- the process of getting the product to the consumer
  • Marketing Concept- the idea that an organization needs to satisfy its customers while also trying to reach its organization's goals
  • Target Market- a specific group of consumers that an organization selects as the focus of its marketing plan
  • Marketing Mix- a combination of four basic marketing strategies, known as the four P's- product, price, place, and promotion
  • Utility- the concept of conveying the value of products through appropriate and convenient placement, adequate information, and easy exchange

Section 8.2

  • Marketing plan- a written document that provides direction for the marketing activities of a company for a specific period of time
  • Mission- a business's purpose or goal
  • Marketing environment- the internal and external factors that influence marketing decisions and the ability of the marketing plan to reach its goal
  • Demographics- statistics that describe a population in terms of personal characteristics, such as age, gender, income, ethnicity, or education
  • Goal- the eventual desired outcome
  • Objectives- the steps that will lead to the goal


Chapter 10 Designing products

Section 10.1

  • Products- goods and services that have monetary value
  • Core Products- the main product that the customer is buying
  • Facilitating Products- goods or services that aid the use of the core product
  • Supporting Products- extra goods or services that accompany the core product to add value or to differentiate it from the competition
  • Products Mix- the total assortment of products that a company makes or sells

Section 10.2

  • Product Life Cycle- the various stages that a product goes through during its existence, from development, introduction, growth, and maturity to decline
  • Customer Satisfaction- a positive feeling or reaction customers have when a business of product meets their needs
  • Customer Loyalty- the customer's faithfulness to a business and its product, demonstrated by the customer purchasing the product again
  • Relationship Marketing- building relationships with customers by adding value to the interaction that will lead to long-term customer satisfaction and retention